Financial Performance - For the year ended March 31, 2021, the Group's total revenue increased by approximately HK$576.0 million to HK$1,585.5 million from HK$1,009.5 million for the year ended March 31, 2020[11]. - The Group recorded a turnaround profit attributable to the Shareholders of approximately HK$25.6 million, compared to a loss of approximately HK$20.9 million for the year ended March 31, 2020[11]. - Revenue increased by approximately HK$576.0 million, from HK$1,009.5 million for the year ended 31 March 2020 to HK$1,585.5 million for the year ended 31 March 2021[23]. - Revenue from the trading business increased by 70.6%, or HK$618.8 million, from HK$876.5 million for the year ended 31 March 2020 to HK$1,495.3 million for the year ended 31 March 2021[23]. - Revenue from restaurant operations decreased by 41.7%, or HK$55.4 million, from HK$132.9 million for the year ended 31 March 2020 to HK$77.5 million for the year ended 31 March 2021[23]. - The profit attributable to shareholders for the year ended March 31, 2021, was approximately HK$25.6 million, a significant increase from a loss of HK$20.9 million for the year ended March 31, 2020[35]. Cost and Expenses - Cost of revenue increased by 66.4%, or HK$599.8 million, from HK$903.1 million for the year ended March 31, 2020 to HK$1,502.9 million for the year ended 31 March 2021[25]. - The cost of inventories sold increased by 70.3%, or HK$611.4 million, from HK$870.2 million for the year ended March 31, 2020 to HK$1,481.6 million for the year ended 31 March 2021[25]. - Staff costs decreased by 39.6%, or HK$19.5 million, from HK$49.3 million for the year ended March 31, 2020 to HK$29.8 million for the year ended March 31, 2021[25]. - Short-term lease and related expenses decreased by 41.1%, or HK$18.5 million, from HK$45.0 million for the year ended March 31, 2020 to HK$26.5 million for the year ended March 31, 2021[28]. - The cost of food and beverages decreased by 38.8%, or HK$12.8 million, from HK$33.0 million for the year ended March 31, 2020 to HK$20.2 million for the year ended March 31, 2021[25]. - The percentage of cost of revenue as a percentage of revenue increased from 89.5% for the year ended March 31, 2020 to 94.8% for the year ended March 31, 2021[25]. Market Outlook and Strategy - The Group is optimistic about long-term prospects due to the expected gradual recovery of the global economy following the commencement of vaccination programs[14]. - The Group aims to optimize and upgrade financial technology services and scenario-based services to increase market share in the future[14]. - The economic development of the PRC is expected to provide significant potential for future growth, leveraging the massive domestic market[14]. - The Group will continue to explore and develop new market opportunities to become a leading enterprise in the industry[14]. - The trading business has significant development potential, especially in 3C electronic products, with a focus on the domestic market in China[88]. - The Group aims to shift from price competition to branding competition in its trading business[88]. Financial Position - As of March 31, 2021, the Group's cash and cash equivalents were HK$32.3 million, representing a 13.3% increase from HK$28.5 million as of March 31, 2020[35]. - The Group's total current assets and current liabilities were HK$448.3 million and HK$386.6 million, respectively, with a current ratio of approximately 1.2 times[35]. - The gearing ratio of the Group improved to 7.2 as of March 31, 2021, down from 17.1 as of March 31, 2020, indicating a stronger financial position[40]. - The net proceeds from the global offering of shares amounted to HK$70.9 million, with HK$20 million reallocated for investing in new businesses related to supply trading of food and consumer goods[45]. - The outstanding balance of a previous loan facility was fully repaid during the year, reflecting effective debt management[39]. - The Group had no unutilized banking facilities as of March 31, 2021, indicating efficient use of available credit[38]. Governance and Management - The company is focused on maintaining a strong management team with diverse backgrounds in finance and business[106]. - The board includes a mix of executive and independent non-executive directors to ensure balanced decision-making[111]. - The Company is committed to transparency and accountability in its financial reporting and governance practices[114]. - The Company has complied with all applicable code provisions of the Corporate Governance Code during the year ended March 31, 2021, except for a deviation from code provision A.2.1[131]. - The Board consists of seven Directors, with four being executive Directors and three independent non-executive Directors (INEDs) as of the date of the annual report[143]. - The Company provided monthly updates on performance and position to the Directors during the year ended March 31, 2021, to assist in discharging their duties[154]. Director Remuneration and Committees - The company is committed to ensuring that compensation arrangements for executive directors and senior management are fair and consistent with contractual terms[197]. - The Company reported a director's remuneration of HK$360,000 annually for independent non-executive directors, reflecting their duties, responsibilities, experience, and prevailing market conditions[120][124][126]. - The Audit Committee consists of three independent non-executive Directors, ensuring oversight of financial reporting matters[178]. - The Remuneration Committee consists of three members, including two independent non-executive directors and one executive director[199]. - The Nomination Committee also comprises three members, including two independent non-executive directors and one executive director, with Mr. WU Jiangtao serving as chairman[199]. Employee and Operational Changes - As of March 31, 2021, the group had 118 employees, a decrease from 183 employees in 2020[66]. - The company plans to maintain and expand its Viet's Choice Brand restaurants, with an original allocation of HK$16.5 million, of which HK$16.1 million has been utilized[48]. - Investment in supply chain business has been allocated HK$10 million, which has been fully utilized[48]. - The company upgraded its information technology systems with an allocation of HK$1.9 million, utilizing HK$1.4 million[48].
民商创科(01632) - 2021 - 年度财报